A blanket limit, provided by some companies, on your homeowners insurance, combines the totals available for the individual, normally separate property coverages, into one larger number. Claims can be paid out of the blanket limit, and do not have to be allocated exactly how normal, separate coverages would be. The separate property coverages usually include:
- The structure of your home (covered at replacement cost, but does not include cost of land)
- Outlying, non-attached structures on your property
- Your personal property (possessions)
- Cost of living expenses if your home suffers a catastrophic loss
In addition to property related coverages, you will also have insurance to cover your liability to others (minimum $100,000) and medical payments to others. These are not contained under a blanket limit.